Nov 12

How You Can Take Advantage of Your Super to Provide you a Better Retirement

  • Have you realized you are loosing money by not taking control of your super funds?
  • If you have not taken control, then you are losing an additional $2 for every $1 that would otherwise be available to you in your retirement.
  • To retire on $40,000 per year and to live for 20 years in retirement you will require a balance of $800,000 in your super? 
    Do not miss out by using your super as a deposit to buy an investment property that will assist in securing your future in retirement?                                                                                                        

The Government has officially announced that superannuation funds can now borrow to buy investment properties. This means that everyday Australians can now simply and easily obtain security for their family’s future by using their Superannuation as a deposit and leverage their Super Funds into an investment property. You can access and take control of your super to make the deposit on an investment property and create wealth at an even faster pace than non-super property investors.

  • Use your Super as a Deposit: Accrued super balances can be used to make a deposit to buy an investment property.
  • Gearing in Super: Compliant Superannuation funds are allowed to borrow funds from a lender based on legislation passed in September 2007. We are able to demonstrate to you the differences and the most suitable and easy solution for your particular needs. Whilst providing access to an appropriate lender who completely understands the Superannuation guide lines.
  • Borrow the Balance from the Bank:  There are a number of financial institutions keen to lend to Self Managed Super Funds money against bricks and mortar. The Super Fund will be able to borrow up to 70% of the property purchase price. The leverage provided by such a move is $3 for every $1 in the super Fund subject to a minimum balance and depending on your particular circumstances. No other investment vehicle provides such leverage
  • Property Only – No other Security:   By law the lender will provide the Self Managed Super Fund with a property investment loan on a limited recourse basis. This means the investment property used as security for the loan is only at risk from the bank and no other assets held within the Self Managed Super Fund.
  • Most Powerful Wealth Creation Vehicle:  Is created by investing in positively geared property and coupling it with compulsory super contributions paid by your employer, together with salary sacrifice opportunities and a significantly low taxation regime. The tax on the rental income is only 15% and with the property depreciation schedules allowed by the ATO you can potentially do away with taxation in the Super Fund altogether. So, potentially with very little effort or additional expense on your part you can accumulate valuable property investments by establishing a Self Managed Super Fund and secure your retirement funds.
  • Tax Free Income for Life:  At retirement all income from your property wealth held in super becomes tax free. That is zero (0%), with no more tax to be paid. As stated above your investment is positively geared and your Super Fund will be enjoying strong passive income streams. The property can be sold at any time if the market conditions are favourable.
  • Get the right Structure:  Property investment in Super requires a specific structure with a Self Managed Fund to be set up, so it’s important that you are guided by an experienced professional to show it all comes together with a minimum of fuss
  • Australia’s Ultimate Tax Haven: Not only is the rent received from the investment taxed at a reduced rate of 15% during the accumulation phase and zero (0%) when you retire. In the event the Super Fund decided to sell the property prior to retirement the Super Fund would be subject to a 10% capital gains tax. If the property is sold in during the retirement phase then there is “NO CAPITAL GAINS TAX”
  • Is Australia a Tax HavenYES! For those well informed enough to take advantage of the Super Rules. Come join the million or so Australians who already know how to optimize their superannuation to personally maximize and secure their future in retirement. 

 Attend our upcoming Self managed super fund seminar “How to use your super to invest in property

Nov 12

Footscray now hot spot for property

Footscray Now Hot Spot For Property 

  • Gentrification of Footscray being fuelled by infrastructure funded, by the Federal and State Governments, including the $5.3 billion spent on the regional rail link due to open 2016.
  • Decentralisation of state government offices, the Grollo development to be completed by June 2014 with City West Water, State Trustees, Department of Education introducing a further 1600 staff in the area.
  • Melbourne 2030 planning strategy designating Footscray as one of the major activity centres and as a preferred location for future high density residential and commercial developments.
  • Within 5kms of the CBD, Footscray is the suburb with the best capital growth potential, and a strong tenant demand.

View Footscray project.

Is Footscray the next property hot spot? Tell us below.

Mar 22

5 Secret Keys to Success Used by Highly Successful People

1. Have a burning desire/dreams

In ten years’ time…

What kind of cars do you want to drive?
How many investment properties do you want to have?
Where do you want to be financially? Do you want to be better off or still in the same financial situation?

Knowing what you want out of life is the basis for creating—and achieving—your goals.

Once your goals are clear, write them down and pin them up somewhere prominent where you will see them and be reminded of them every day.

If you don’t know where you are going, how will you know when you get there (or don’t get there)? If you have no clear goals, then what are you focussing your efforts on? Or maybe you’re not applying effort at all… Without a goal, you have no focus. Without a goal, when we come across challenges, we are more likely to give up. But if your dream is clear and you are determined, you can conquer the challenges that come your way.

Everything in life happens twice—once in your thoughts, and once in your actions.

Make sure your goals are clear.

2. Associate with the right people

When you have set your goals, it’s important to start associating with people who have similar levels of goals.

Let’s picture six of your best friends. Estimate their income then work out their average income. That figure is likely to be the level of your income. And these friends’ current goals are likely to be at the same level as your goals.

But, if you have higher aspirations, you need to connect with people who have similar higher levels of goals.

Why is this important? Let me give you an example…

Your aunty lives nearby. She is unemployed. You tell your aunty that you want to be a property multi-millionaire. What does your aunt say to you? She tells you that you are a dreamer right? That you have your head in the clouds. What does this do to your conviction about being able to achieve your goals?

On the flip side, you might happen to have a wealthy friend say Robert, a very successful property investor. Robert visits your house and you tell him that you are going to be a multi-millionaire by investing in five properties over fifteen years. If Robert is a very successful property investor, what do you think he will say to you?

If you share your goals with people who have made it, they will tell you it’s possible for you to do it too. And if you share your dream with people who can’t comprehend your vision, they will say you are crazy.

The moral? It is very important to associate with people with the same interests, with like mindsets.

So, in order for you to successfully invest in properties, it pays to associate with people who are already successful property investors. Not only will they encourage you, but they can help to guide you along the road to success.

3.   Use leverage to create wealth

Everyone has twenty-four hours in their day. So how come some people make more money than other people?

Because it’s those who know how to leverage their money that make more money in the long term. Leveraging means using a little of your money to gain control of big money. And if that big money has a little movement, that gives you a big leverage on your money.

This is why real estate gives you the best leverage. You only need to put in 10% and the bank will lend you 90%. That means if you put $1 into real estate, the bank will lend you $9.

Why will the bank lend you so much on real estate? Because the bank studies risk and investing in real estate is low risk. Simple.

4.   Think of the long term

Property investment is for the long term. It is not a get-rich-quick scheme. You need to be patient and to wait for at least ten years to see the big returns. It’s all about doing something today for the better of tomorrow.

Historically in Australia over the last eighty years, property has doubled in value every 7-10 years. The reason behind this is inflation: Material costs goes up, population increases, land price increases, and labour costs go up. So, whatever you buy today, if history is to go by, the longer you hold on to the property, the more it goes up in value for you.

Don’t buy today and sell tomorrow. Don’t speculate. Buy today and hold on to your property for the long term.

5.   Take action

Knowledge is useless without taking action. So, whatever you learn, put it into practice.

You see this all around you. How many times have you been in a meeting where people have talked for hours, only for little action to come out of it?

Having ideas is great but if they stay in your head, nothing will get done.

Be clear about your dreams and goals. Be clear about how much you want to retire on and when you want to retire. Make a step-by-step plan which will get you where you want to be. Then, TAKE ACTION.

About Sang Duong
Sang is the co-founder of Real Estate For Success who create wealth for their clients through independent property advice and advocacy. 
At the age of 32, he has been able to achieve a passive income through property investing.
He’s the author of How to Make $90,000 Per Year — Every Year — For Life (Free Ebook Download)
Sang is a special speaker at seminars, and has hosted his own seminar called 7 Proven Steps to Property Investing
He has been featured in The Australian Financial Review as an expert in property investment.

 

Mar 18

7 must-dos for smart property investors

7 must-dos for smart property investors

How do you choose an investment property and what should you look for?

 1. Find capital growth location

This is the most important consideration when buying an investment property.
You are aiming for your property to go up in value so you can borrow against it to buy another property. Buying capital growth property will help you to expand your portfolio to be able to build a substantial asset base to support a comfortable retirement. Location factors to consider include being close to the CBD and areas undergoing gentrification. Buying in the suburbs, your property must be affordable and, for example, close to public transport.

2.   Buy an investment property with low holding cost

Make sure you do the numbers first before you invest. Determine how much this investment will cost you per week, per month or per year. Will this very noticeably affect your lifestyle or financial situation? If the answer is “yes”, then this investment may not be suitable for you.

3.   Buy affordable property

Areas to consider:

  • apartments in inner city suburbs, or
  • houses in Melbourne growth corridor

In the long term, both of these areas will perform well.

Inner city suburbs

In any capital city, locations close to the CBD are prime spots for investing in property because they are close to employment, major hospitals, and public transport. Here, there is always demand from buyers and tenants. The type of tenants that will rent an apartment here are working professionals, singles, or couples usually with no kids.
Land close to the CBD is getting scarce and, in many locations, demand for quality residential property consistently outstrips supply. In some suburbs, there isn’t enough stock to meet demands, which pushes rent up even further.

Houses in Melbourne growth corridor

Due to housing affordability, most first home buyers are unable to afford to buy a house close to the CBD, so they buy houses in Melbourne growth corridors. This is the biggest trend of the future. Wherever there is long-term population growth, there is solid property price growth.

4. Adopt a long-term mindset

Property investment is for the long term, that’s at least ten years. The longer you hold on to your property, the more it will grow in value and the more wealth it will build for you.

5. Maximise your tax benefits

Take advantage of your tax benefits to minimise your tax payments. A brand new property enables you to claim back maximum tax. You can claim on the building and fixtures and fittings. Buying an old property means you can only claim back on the building. When you claim more tax back, it puts more money in your pocket to service the investment property.

 6. Choose the right location

Choose a location that is close to all amenities and facilities. Walking distance to public transport, like bus, trams or trains for example, is ideal. A short stroll away to school, shopping centres and public parks etc. is desired. The benefits of being so close to all of these amenities make your property very attractive to tenants and thus easy to rent out.

Look for a location with potential for capital growth, such as big infrastructure development, a new train line, a new shopping centre or a new freeway.

 7. Seek professional advice

This is probably the most important piece of advice I can give you.

If you don’t know or are unsure of what to do, where to start, where and what to invest in—seek advice. The right person to give you that advice should have a lot of experience in property investment themselves, own many investment properties, and therefore be well-versed in the property market to guide you successfully and to give you the helping hand you need.

About Sang Duong
Sang is the co-founder of Real Estate For Success who create wealth for their clients through independent property advice and advocacy. 
At the age of 32, he has been able to achieve a passive income through property investing.
He’s the author of How to Make $90,000 Per Year — Every Year — For Life (Free Ebook Download)
Sang is a special speaker at seminars, and has hosted his own seminar called 7 Proven Steps to Property Investing
He has been featured in The Australian Financial Review as an expert in property investment.

Dec 16

Wyndham Vale Victoria Suburb Profile

Wyndham Suburb Profile

Introduction

Wyndham Vale, within Wyndham City is located approximately 38 kilometres south-west of the Melbourne CBD. The suburb predominately contains an urban form that consists of a combination of both rural and residential properties. Development activity in Wyndham City has been strong in recent years, particularly within the nearby suburbs of Tarneit, Hoppers Crossing and Werribee and as such has become one of the fastest growing regions in Victoria.

Price growth in the Wyndham Vale housing market has been strong over the last seven years. During the year 2000, 119 houses were sold for a median price of $118,000. During 2007, year to date, 227 houses have been sold at a median price of $215,000. This equates to total price growth in this market of 82.2% or 8.9% per annum over the seven year period. The current median house price at around $215,000 indicates that this market represents affordable buying when it is also taken into account that Wyndham Vale is located in relatively close proximity to Melbourne.

Wyndham is considered to be one of the fastest growing regions in the Melbourne West area; however, car dependency is still needed. Ranking at 47/100, Wyndham residents and investors still need cars to travel for the time being, but infrastructure plans are underway to provide better transportation as well as better road access.

Population

The Local Area (Wyndham) is in a high growth region. Between 2003 and 2008, the resident population increased by 6,000 people at an average annual growth rate of 5.5%. Wyndham was Victoria’s largest and fastest growth council in 2007‐08 with growth of 7.2%. The local area had a growth rate of 7.1% for the same year.

This compares to a growth rate of 6.8% across the region (the Wyndham‐Melton corridor) and 1.7% across metropolitan Melbourne over the same period. Around 32,000 additional residents are projected to live in Wyndham Vale and surrounds (the Local Area)

over the period between 2008 and 2025. This represents an average annual growth rate of 5.0% over the period.

Public Transportation

Wyndham Vale is well located in close proximity to the Princes / West Gate Freeway which allows for easy access to Melbourne and Geelong. There is also a railway station located in Werribee which offers suburban rail services. Avalon airport and the Mercy Werribee Hospital are key pieces of transport and social infrastructure that are also located in close proximity to Wyndham Vale.

Education

Within the catchment area there are 21 schools in total providing both state and public education. One school currently exists in the suburb of Wyndham Vale (two more are proposed), seven exist in Werribee, four in Tarneit and seven in Hoppers Crossing. The Werribee Technology Precinct houses a range of research, teaching and public institutions and is located immediately east of the Werribee Town Centre.

Facilities

Wyndham City is currently served by three main commercial centres, these being Werribee Plaza, Werribee Central (Town Centre), and Hoppers Crossing. Within the catchment area there are more than 10 shopping centres ranging from major regional shopping centres right down to local shopping villages. The area is well serviced with other facilities in the catchment including; University of Melbourne’s Werribee Campus, Presidents Park – including hockey, softball and baseball facilities, Werribee Park Golf Club and the National Equestrian Centre.

Wyndham Springs, located in the heart of the high growth area of Wyndham Vale, has the opportunity to capitalise on a number of long term benefits that are occurring in the area, namely:

• Unprecedented population growth that has stimulated public and business investment to improve liveability;

• Werribee Plaza Regional Shopping Centre, that includes Coles, Safeway, David Jones, Myer, Kmart and Target as well as a

significant retail offering along Old Geelong Road, at Werribee Town Centre and Werribee Central;

• Major Employment Centres such as the Werribee Technology Precinct that incorporates a diverse range of industries including engineering, natural sciences and biotechnology;

• Entertainment and recreation options, including Wyndham Leisure and Events Centre, Sanctuary Lakes Golf Club, playing fields and sports fields;

Future Growth

 

A significant number of commercial, residential and community developments are

planned for Wyndham Vale, including:

• New Retail Precinct Wyndham Vale Square Neighbourhood Centre, is expected to

open in December 2009, including Woolworths, Aldi and speciality Stores;

• New Educational Precinct at Manor Lakes Blvd incorporating Manor Lakes College,

Our Lady of the Southern Cross Catholic primary school, and specialist school;

• A Community Centre planned at Manor Lakes Blvd, including library, kindergarten,

maternal health and youth service facilities. This is expected to open in 2011;

• Manor Lakes Central Shopping Centre with Coles, proposed train station and

schools.

 

Dec 16

Clayton Suburb Profile

Clayton Suburb Profile

Introduction

Clayton is a suburb in Melbourne, Victoria, Australia, and 18km southeast from Melbourne’s central business district. Its Local Government Area is the City of Monash. At the 2006 Census, Clayton had a population of approximately 16,000.

Clayton is a mixed-use suburb in south-eastern Melbourne. One of Australia’s largest universities, Monash University, is located here. As a result, the suburb has a large proportion of people aged 18-24 (31%). Almost two-thirds of the population were born overseas, and there was a large increase in the Chinese born population between 2001 and 2006.

Home to various education and research centres, Clayton are conveniently located close to major roads that link the suburbs to the city. Clayton is renowned for being the home for the prominent Monash University and Monash College. Clayton’s walk score is an excellent 82/100 (Very Walkable), which means that, just by walking from your house, you can reach schools, public transportation, parks (Waverley Park), restaurants and local stores. Also, within a short drive, residents may see themselves driving to Chadstone Shopping Centre, Springvale road shops and also The Glen Shopping Centre.

Population

In 2006, the total population of Clayton – Notting Hill was estimated at 16,678 people. It is expected to experience an increase of over 3,300 people to 20,051 by 2021, at an average annual growth rate of 1.24% per annum over 15 years. This is based on experience an increase of over 1,300 households during the period, with the average number of persons per household falling from 2.61 to 2.59 by 2021.

Public Transportation

Clayton is classed as a Premium Station and is in Metcard Zone 2. Clayton is located at the eastern end of the Clayton Road level crossing, with station access from Clayton and Carinish Roads.

The station consists of two side platforms; Platform 1 has a large weatherboard building housing an enclosed waiting area, ticket facilities and toilets, while platform 2 has a smaller weatherboard building. A large Metcard ticket vending machine is located inside the waiting area, which is able to dispense most ticketing options available and also accept notes and coins. There are several connecting bus services

Education

Primary Schools include:
  • Clayton North Primary School
  • Clayton South Primary School
  • Huntingdale Primary School
  • St Peter’s Primary School
  • Clayton Primary School
  • Westall Primary School
Secondary Schools include:
  • Huntingtower School
  • Westall Secondary College
  • Mount Waverley Secondary College
University include:
  • Monash University (Clayton Campus)

Facilities

A large new building at the corner of Cooke Street and Centre Road was opened in April 2008. It houses the Clayton branch of the Monash Public Library Service, a swimming pool, gym, counselling services, health and child care services, theatrette and meeting rooms.

The centre is located along Clayton Road in Clayton, approximately 20kms south east of the Melbourne CBD and accessible by bus, train and car. The centre offers an extensive range of stores for everyone.  With Coles, Office work, Priceline, Chemist Warehouse and over 150 specialty stores, services including ATMs, post office, newsagent, tavern and bottleshop, chemist, library.

Also, Clayton Boasts the Monash University (Clayton campus). It is the largest of the university’s eight campuses. Eight out of the university’s 10 faculties are represented on campus – Arts, Business and Economics, Education, Engineering, Information Technology, Law, Medicine, Nursing and Health Sciences and Science. The campus offers a rich array of sporting, cultural, and educational events and facilities, and has a proud record of achievement in fostering collaborative research projects.

Clayton is also home numerous primary schools as well as secondary high schools such as Westall Primary School and Westall Secondary College. Within a short drive, residents of Clayton can see themselves going to high profile shopping centres such as the Chadstone Shopping Centre and the Glen Shopping Centre. Hospitals and medical centres are an abundant in Clayton such as the Monash Medical Centre. It is one of Melbourne’s major acute public hospitals and provides services to the people living in the southeast of Melbourne.

Conclusion

Home to Monash University and Medical Centre, the Melbourne suburb of Clayton lies at the heart of the city’s celebrated southern sand belt golf courses. Clayton is also close to major roads linking the suburb to the city, to the Mornington Peninsula and to the Dandenong’s. The Melbourne-Cranbourne rail line passes through Dandenong, which bills itself as Melbourne’s Second City.

Clayton is part of the populous and ethnically-rich City of Monash, a municipality which boasts such well-known landmarks as Monash University, the Victoria Police Academy and Waverley Park.

Dec 16

Mentone Suburb Profile

Mentone Suburb Profile

Introduction

Just 22 kilometres south of Melbourne’s CBD, Mentone is a family-oriented hub in the City of Kingston with a sandy beach, 11 public parks and easily-accessible shopping centres. Founded in the late 1880s, its name derives from the resort town of Mentone in the French Riviera. Retirees, singles and couples are drawn to smaller properties that form the backbone of this suburb however a large house portfolio is having interest to larger families.

Medium-density development in the form of large blocks of flats and units is common around the Mentone station area. There has been some redevelopment along the coastal strip but there is no significant undeveloped land. The population of Mentone-Moorabbin Airport remained steady at approximately 11,200 persons between 2001 and 2006.

Major features of the area include the Port Phillip Bay foreshore, Mentone Grammar School, Mentone Girls Grammar School and St Bede’s College.

Because of its development, Mentone is already an established suburb. Mentone’s walk score of 74 indicates that it is within close proximity of facilities such as restaurants, cafes, shopping malls, libraries and schools.

According to the latest Census demographics, the majority of Mentone residents originate from the UK, but greater numbers of Greek, Italian and Chinese families are also settling here. Community centres and facilities are well provided for throughout the suburb. Residential architecture ranges from older-style brick townhouses to modern apartments to substantial four-bedroom contemporary properties.

Population

Population: 14158, 76% are Australian born, the largest age group is 20-39 representing 29% of the population and the second largest is 40-59 representing 27% of the population. 47% are married, and the largest occupation group are professionals representing 9% of the population. 57% live in a separate house, 24% in a flat and 16% live in a semi/terrace.

Public Transportation

Mentone railway station is located at the Southern end of the Balcombe Road level crossing, with station access from Como Parade and Balcombe Road.

The station consists of two side platforms; Platform 1 has a large weatherboard building housing an enclosed waiting area, ticket facilities and toilets, while platform 2 has a smaller weatherboard building.

Education

Proximity to both primary and secondary education is a drawcard for Mentone and a key reason why families choose to buy or rent in the area. Along with Mentone Primary, Mentone Park Primary and St. Patrick’s Primary, parents can choose from a selection of highly regarded secondary schools within the suburb. These include Mentone Grammar, Mentone Girls’ Grammar, Kilbreda Secondary, St. Bedes College and Mentone Girls’ Secondary College.

Facilities

Mentone Shopping Village is a lively retail strip and super-convenient for local residents. It runs along Balcombe and Mentone Parades and adjacent streets and is moments from Mentone’s train station and bus terminal. By car, it can access Mentone Shopping Village from Nepean Highway, Warrigal Road or Beach Road. Another retail choice is over in Mentone East. Thrift Park Shopping Centre on the corner of Lower Dandenong Road and Nepean Highway is an older-style neighbourhood centre with more than 40 specialty shops, a small Safeway, a post office and plenty of parking. It’s also close to many restaurants meaning you can shop then dine. Plans for a $15 million Thrift Park Shopping Centre upgrade, including the addition of a larger Safeway and 30 specialty shops, is proposed for commencement in 2010.

Given its prime position right on the Port Phillip Bay foreshore, Mentone’s history has been shaped to a large extent by Mentone Life Saving Club. Established in 1920, the Club has programs for members of all ages, starting with their Nippers program for children aged seven and over. Serving the older members of the community are Mentone Bowling Club, Mentone Ten Pin Bowling and the Mentone RSL. The Mentone Hotel on Beach Road is a well-known and well-used local fixture. Open daily, it has live music and draws crowds with a contemporary menu and open layout.

Future Growth

Charter Hall will deepen its activities in Victoria with a $75 million residential project at Mentone, in Melbourne’s south-east. Charter Hall Group will build townhouses on land that it bought in a joint venture with Harvey Norman, which plans to build a bulky goods centre that fronts the Nepean Highway.

The $75 million project is being developed by Charter Hall Group’s Opportunity Fund No.5, and opens up a new front on the company’s activities in Victoria. The Mentone development, called Aquilo, will comprise 119 two-bedroom and three-bedroom townhouses, all with north-facing living areas. It is about two kilometres from Mentone beach.

There are 13 floor plans and house types, with prices ranging from $495,000 for a two-bedroom (150 square metres) apartment to $595,000 for a three-bedroom (180-200 sq m), 2.5-bathroom home.

Oct 03

Six Powerful Reasons why right now is the best time to invest in Melbourne?

Six Powerful Reasons Why Right Now is the Best Time to Invest in Melbourne

Don’t listen to the media opinion. The news is not there to educate you about how to become a successful investor. In fact it’s main purpose is to sell newspapers. If you open to the main page, it always has the worst news. And we all know that bad news sells. The person who writes an article is a journalist. What is their role? A journalist is in fact not a property investor expert. Their role is to write bad news,  so don’t listen to the news !

Always base your decision on facts…

Here are six powerful reasons why now is the best time to invest:

1. Huge Population Growth
Population in Melbourne increases by about 1,400 every week. Where do people rent? Where do people buy? This mean the demand is always there.
So how many more dwellings do we need every week?
Average Melbourne household size is about 2.7 people per property.
1,400/2.7 = 518 new dwellings needed every week to cater for the demand.
When there is a strong population growth, what happens to the value of property? It goes up in value.

2. Shortage of Properties
Currently Melbourne has shortage by 20,000 dwellings. What this will do with the rental? It pushes rent up more and more. What does this mean to the property value? Property price increases.

3. Rising Rent
Over the last few years rent has rising significantly due to shortage of supply and rising demand. This mean as an investor you’ll get more rental yields, therefore you win ! As Melbourne population continues to increase and not enough properties are being built, rental continues to rise.

4. Low Interest Rates and Strong Economy Growth
Today interest rates is about 7.25%, it is still one of the lowest interest rate in decades.
Why interest rate increases? It is to control inflations. Normally when interest rate increases meaning that we have a strong economy. This is good for real estate. However many people are fearful when interest rate rises. As an investor, you do not be fearful. Here’s why? When the interest rate increases, the rent will also increases, so you pass the cost on to the tenant. You will also get more on the tax benefits, so really as an investor, you win !

5. Know Where to Buy
Not every locations is a good location to buy. You have to look at the key growth drivers in that location. Who will rent in the location? The vacancy rate in the location. The population growth in the location. When there are shortage of properties and rising populations, it pushes prices up in the location. Other factors to consider are: is it close to public transports, shops, employment and facilities?

6. Long Term
According to the ABS statistics, property prices in Australia doubling up every 7-10 years over the last 80 years. We had World War 1 and 2, interest rates went up and down, the economy went up and down. But the property prices continue to doubling up in every 7 to 10 years. Here are the key reasons: Melbourne property is still affordable, population increases, scarcity of land, material cost increases and labour cost increases. Therefore property prices have to increase. Invest for the long term, don’t speculate. Don’t wait to invest, but invest then wait. When you invest, time works for you. But when you don’t invest, time work against you. You don’t need to be rich to invest, but you have to invest to be rich. Why you need to invest? Simply is to build wealth for you and your family. Property is the safest vehicle to invest, compare to shares or other businesses. Finally when you invest for the long term, you will never go wrong, as property price increases in the long term.

Don’t be fearful, as an investor you can always win in any property market, if you have successful property investors to help you.

A helping hand to property investors…

If you want to attend our next Live Property Training Workshop.
How you can go from 0 to 7 properties in 3 years“.

If you want to become a successful property investor join our millionaire mentorship program.

Aug 26

What is the Best Home Loans that suits You?

What is the Best Home Loans that suits You?

Choosing the right home loan is very important as it can saves you lots of money. Read on to understand the different type of loans.

Honeymoon rate home loans

Honeymoon or Introductory rate home loans offer a low interest rate for a period of time, usually for the first year. The Honeymoon rate may be as much as one percentage point below the standard home loan rate. Honey moon rate could be fixed or variable. Once the honeymoon period is finished, the interest rate usually reverts to the standard variable home loan rate.

Low-doc home loans

Low doc loans are designed to assist people who do not qualify for a traditional home loan to buy a property. The requirement is that you need an ABN number for at least 2 years.

You may not be required to provide much of the paperwork that is necessary with standard home loans.

Low doc loans are designed to benefit those people who have trouble showing evidence of regular income. This could apply to casual workers or self-employed. They need some deposit saved or existing equity as the bank only lend up to 80% for low doc loans.

Construction loans

If you’re building a new home, this loan will help reduce interest payments during construction.

There are five instalments payments. The loan will be taken out in instalments as each stage of the building process begins. You only pay interest on the amount you have borrowed so far. As you are not drawing down on the full amount of the loan immediately, interest payments are minimised.

Variable home loans

This loan comes with a variable interest rate, which basically means that the interest you pay will be depend on the market condition. Interest rates in this type of loan can and will fluctuate.

Fixed rate home loans

A fixed rate loan protects you from rising interest rates and against higher payments for the future. If you want to your home for an extended period, this could be an important benefit.

The interest rate will not change even if the interest rate goes up and down.
You have the assurance of knowing exactly what your repayments will be with the ability to fix your interest rate for a set period of time.

The payment amount, which includes the principal and the interest, will be the same despite even if the interest rate goes up or down. The fixed rate home loans give you confidence to budget accurately and plan your finances.

There is a sense of security to the owner of the property as well as the stability offered by fixed rate especially because you are aware of the amount you need to pay at the end of each month.

Choosing your home loan is an important decision, so it is important to speak to a finance specialist to see which home loan suits you and they can also help you to choose cheap home loans. Click here.

Feb 07

How to ensure that you succeed with property investment

How to ensure that you succeed with property investment

 

Investing in a real estate property has always been a popular venture for those who seek financial stability in terms of income and profit in long-term investments. But those who are still new to the business would think of this as a gamble with no definite promise for future stability. In fact, many back out without even trying for fear of losing their hard-earned money and risking financial hurdles later on.

Keep in mind, however, that business has always been a game of chance; but the only difference is the higher possibility of success if you plan for it in advance, as well as properly facing the project with the right information to lessen the risk and increase the possibility of financial stability in the near future.

Getting The Right Information

You are not alone in property investments; in fact, there are plenty of information you can find online or in books to help you succeed in the venture. Even experts are always at the ready to share their experiences in property investment to increase your chances of success. But the only problem here is to determine which information is correct to help you in your long-term goal.

It is a good idea to follow only successful property investors and make use of the advice they share to the general public. In some ways, it is best to use the information provided by those with experience, as well as the reputation of success in the property investment business to guide you in reaching your goal.

Think Long Term

Try to understand that a successful property investment is not with a short-term goal, but investing in a property now to earn millions in the future — after 5 to 10 years. Keep in mind that properties increase its value over time; the property you buy at $500,000 today can increase its price to double the figure after 7 to 10 years. This is the gist of property investments.

It is best to look for a property with the highest possibility of profit and income in the future. Residential properties are a boon for a location with a wide increase in population, as well as commercial zones when the city is showing sign of economic success.

Buying The Right Property

One of the factors that spell the success of property investment is to dish out money for the right property. Investors should always keep in mind that not all real estate properties are fit for a successful long-term investment goal — the idea of buying properties with the highest chances of returning a profitable figure in the future.

This takes a lot of research on your end in terms of value and trend in the real estate market. You need to consider some factors to guarantee that you got the right one that promises success, such as its location, type of property to buy, its demand in the market, its current value and projected value in the future, and what you plan to do with it when the time comes that you want it to product money for you.

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